Fraud prevention

Investment fraud

This happens when you’re persuaded to invest in fake funds, pyramid schemes, or high-risk opportunities. These scams typically appear via adverts, emails, or social media.

Beware

• Websites with unusual URLs or branding
• Documents with official-looking logos—verify independently
• Early “returns” used to lure larger investments
• Celebrity endorsements or success stories
• Requests to install screen-sharing software
• Promises of high returns from crypto, gold, property, or luxury goods

Always check the FCA Warning List of unauthorised firms before investing. If a firm appears on the list, do not invest.

Money mules

A money mule is someone who receives illicit money into their bank account and transfers it on to another account. The mules are often promised money, a percentage of the transfer or gifts in return.

In order to move on illicit funds, criminals use money mules to launder the profits of their crimes. Typically, younger adults are targeted via social media, clubs, schools or universities and may be unaware of the consequences of them allowing their Bank account to be used.

A mule may also be someone who receives money and purchases a vehicle on behalf of someone else and then shortly afterwards disposes of the vehicle but passes the funds received on to the person for whom they purchased it.

Once identified, the consequences of being a Money Mule can be quite severe. Money Muling is a criminal offence and, by allowing it to happen, you could find yourself with a criminal record.

Other consequences include:

• Your bank account being closed
• Potential removal from university or professional organisations
• Difficulty in obtaining employment
• Difficulty in gaining credit, a mortgage or even a phone contract

Those who become money mules are often unaware that the cash they are laundering is used by criminals to facilitate serious crimes such as terrorism, drug trafficking and people smuggling. In some instances, it may result in a custodial sentence of up to 14 years.

For more information visit Don't be fooled - if it sounds to good to be true, it probably is.

Cloned firms

A cloned firm is a type of investment or other financial scam where criminals impersonate an authorised financial services company. Typically, the fraudster will copy key details such as the name, address, registration number and brand details (such as copying logos, websites etc).

Potential victims are then contacted by the criminals or are tricked into visiting the fake website and persuaded to hand over their money believing that they are dealing with a genuine, regulated company.

Beware

• The branding of any website may look genuine but the contact details such as phone numbers, email or web addresses are fake.
• Check the Financial Conduct Authority website for a link to the company that you are investing with and contact them through details found there.  Avoid firms that give you different information.
• Use the Financial Conduct Authority warning list, which is a list of unauthorised firms and scams. This includes known clones.
• Always contact the firm or person that you are dealing with via an independently verified telephone number or email. You can find this often via their official website and/or via the Financial Conduct Authority register.
• Be wary of unsolicited contact. In particular avoid cold calls, unexpected emails, approaches via social media or messaging services such as Telegram or WhatsApp offering investments or other financial services.
• Criminals may pressure you into acting early suggesting that the offer or investment will not be available for long. A genuine company will never pressurise you into making an investment.
• Look out for subtle differences in website addresses and names (e.g changing from .co.uk to .net or something else or use of additional letters in an address such as financialservicescompany.com being changed to financial-services-company.com).
• Don’t rely on the caller ID on your phone to prove the caller is genuinely ringing you from that number, it can easily be spoofed.

Identity fraud

Identity fraud is the use of someone else's personal information such as their name, address, date of birth or financial details without their permission, usually to commit a crime or obtain goods, services or credit fraudulently.

Examples of identity fraud include:

• Opening bank accounts or applying for loans and finance agreements in someone else’s name.
• Taking over existing accounts by impersonating the account holder.
• Using stolen ID documents (like passports or driving licences).
• Claiming benefits or healthcare using another person's details.
• The emergence of Synthetic ID Fraud. Creating a new, fake identity by combining real and fabricated information (e.g. a real social security number with a fake name).

Identity fraud can be committed using data stolen through phishing, data breaches, physical theft or social engineering. It often leads to long-term financial and reputational damage for the victim, and is commonly a gateway to other types of fraud such as authorised push payment ("APP") scams.

Social engineering

Social engineering relies on deception and manipulation to bypass security measures, rather than relying on technical vulnerabilities. Attackers often impersonate trusted entities or create scenarios that pressure victims into making hasty decisions.

Phishing

Encouraging a consumer to visit a malicious website through email or by visiting fake/malicious websites with the sole intention of fraudulently obtaining their personal (often secure) data.

Smishing

Attempt to manipulate a consumer into divulging their personal (often secure) data by sending a text message pretending to be from a bona fide source. Links in messages lead to malicious web sites.

Vishing

Voice phishing: Manipulation of the consumer over the phone or face to face with a view to obtaining personal (often secure) information that can be used to commit fraud.

Qishing

Encouraging consumers to visit malicious sites after scanning QR codes.

Baiting

Encouraging a consumer to visit malicious sites by offering a tempting lure (like a free download or gift). This tricks users into revealing information or installing malware.

Pretexting

This is where a fraudster creates a fabricated scenario and assumes a false identity with the purpose of gaining sensitive information or access to systems.

Car finance compensation scams

Following the FCA’s announcement that they will consult on a potential car finance compensation scheme, here have been reports of scammers contacting people.

These fraudsters are asking individuals for personal information including their name, address, date of birth and bank details. They then falsely claim that people are owed compensation.

Beware

• There's no car finance compensation scheme in place yet
• Car finance lenders are not yet contacting customers about compensation

Romance fraud

Criminals build fake relationships online to gain trust and eventually ask for money.

Victims may feel emotionally invested and find it hard to say no.

Beware

• Quick declarations of love
• Requests to move conversations to private apps
• Avoidance of video calls
• Emergencies requiring financial help
• Requests for travel funds or investment
• Pressure to lie to banks or loved ones

Impersonation fraud

This common scam is when a criminal poses as a trusted official, such as a Bank, the Police or other Law Enforcement Agencies. They attempt to manipulate victims into transferring money. In some instances, they may claim the victim’s bank is under investigation and ask them to “go undercover”. Others impersonate friends or family, often via cloned social media profiles.

Beware

• Unexpected calls claiming to be from official sources
• Requests to move money to a “safe account”
• Social media messages asking for money or personal details
• Slightly altered email addresses
• Urgent requests for help or information
• Pressure to act immediately

Online marketplace fraud

This occurs when a criminal advertises goods that don’t exist.

It’s common on online marketplaces, social media shops, or in adverts that appear too good to be true or offer “limited time only” deals.

Beware

• Links redirecting you to unfamiliar platforms for payment
• Identical product images appearing across multiple sites
• Pressure to “buy now”
• Requests for courier or insurance payments
• Suspicious or overly positive reviews
• Poor grammar or spelling on websites

Invoice fraud

Fraudsters send fake invoices, often impersonating genuine suppliers. They may gain access to email accounts or spoof addresses to request payments to fraudulent accounts.

Beware

• Requests to pay to new bank accounts
• Multiple or unexpected invoices